Lenders approve Hinduja Group’s ₹9,661-crore resolution plan for RCap

the Creditors Committee (CoC) of Reliance Capital It approved the resolution plan put forward by IndusInd International Holding, with 99 percent of lenders voting in favor of the plan, sources said. Business line.

Hinduja Group has made an offer of Rs 9,661 crore, all of which will be paid in advance cash for Reliance Capital and its subsidiaries. This will be in addition to the cash reserve of around Rs 400 crore that RCap has created by redeeming loans, among other ways, a source said.

Accordingly, RCap lenders will get around Rs. 10,000 crore for principal outstanding of Rs. 16,000 crore, which translates to a recovery of around 65 per cent. Voting on the resolution plan began on June 9 and concluded on Thursday. They added that the plan will now be submitted for approval by the National Company Law Tribunal (NCLT) within 7-10 days. The deadline for submitting a Final Solution plan with the NCLT is July 15th.

Hinduja Group via IndusInd International Holdings, was the sole bidder in the expanded challenge mechanism to resolve RCap, submitting a bid of Rs 9,650 crore, which included a proposal to infuse Rs 300 crore into Reliance General Insurance. The Constitution Committee, in May, voted in favor of an equal distribution of revenues among all members, regardless of whether they supported the dissolution plan.

Meanwhile, Reliance Capital has approached the Supreme Court with details of the second auction as per the requirements of the pending case against Torrent Investments which alleged favoring the Hinduja Group and contested the holding of the second round of the appeal mechanism.

The Supreme Court is expected to hear the case in August. However, with the settlement plan finalized, the coordinating committee has contacted the SC for a hearing sooner than scheduled, Business line I mentioned earlier.